Production Lease Renewal

ENEGI OIL PLC

AIM ticker: 'ENEG'

OTC ticker: 'EOLPF'

13 August 2012

Enegi Oil Plc

('Enegi' or 'the Company')

Production Lease Renewal for Garden Hill South

Enegi Oil, the independent oil and gas company, announces that it has been granted a 5 year renewal over an area, in Production Lease 2002-01 ('PL2002-01'), that incorporates the producing PAP#1 ST#3 well and the surrounding area. This award follows extensive discussions between the Department of Natural Resources ('DNR') of the Provincial Government of Newfoundland and Labrador and the Company regarding a renewal to PL2002-01 which, under the terms of the lease, expired on 12 August 2012.

In preparation for the discussions with the DNR, which were initiated by the Company when it submitted its application for renewal in December 2011, the Company worked with Fugro Robertson, international oil & gas consultants, to prepare an updated model for PL2002-01 using the most recent data collected from the PAP#1 ST#3 well. The Company then contracted a second independent evaluator, AJM Deloitte, to review the basis of the revised reservoir model and verify the validity and sufficiency of the information presented. The review of data incorporated the results that the Company collected, and announced on 14 May 2012. Those results showed that there had been no signs of pressure depletion; indicating that the PAP#1 ST#3 well is in contact with a reservoir that is larger than that anticipated in Enegi's 2007 Competent Person's Report.

The renewal of a lease is subject to the Petroleum Regulations under Newfoundland and Labrador's Petroleum and Natural Gas Act. Under the Petroleum Regulations an Operator, on expiry of a lease, is required to relinquish all quadrants of a lease area that, based upon existing data, are not lying in whole or in part over a petroleum pool; or are not required for the drilling of injection wells or for the efficient development, conservation and production of a petroleum pool that is in production.

The renewal indicates that it is the view of the DNR that approximately 16km2 from the original 158.8km2 lease area of PL2002-01 satisfies the requirement for renewal, and is not required to be relinquished. However, at this time, it is the Company's view that the area that is covered by the lease renewal is inconsistent with the model that the Company believes best reflects the geology of PL2002-01. Over the coming weeks the Company will seek to understand the DNR's model before deciding how to proceed.

The relinquishment on PL2002-01 represents a small portion of the total land area over which the Company has rights in western Newfoundland. The Company's rights with respect to EL1070 and EL1116, which have a combined land area of approximately 3,150.2km2, remain unaffected by the decision of the DNR. As well as developing a detailed subsurface model for PL2002-01, the Company has acquired over 500km of existing seismic lines around the Port au Port peninsula which it will use to develop a wider subsurface model. Following independent assessment of this model the Company will communicate the potential of its land position to shareholders. 

Alan Minty, CEO of Enegi Oil Plc., commented:

"We are pleased that we have secured a 5 year renewal over an area that incorporates the PAP#1 ST#3 well which will allow the Company to continue to progress its current operations. Under the regulations the Company is required to relinquish any part of the lease area that does not lie over a producing petroleum pool, and as such a detailed review of the DNR's decision will be undertaken over the coming weeks. The land relinquished on PL2002-01 represents only a small proportion of Enegi's overall land position and potential in western Newfoundland and we will push ahead with our modelling and planning of future activities. "

Enegi Oil

Alan Minty, CEO Tel: + 44 161 817 7460

David Parry, Director Tel: + 1 604 568 0733

Cenkos Securities

Jon Fitzpatrick Tel: + 44 207 397 8900

Neil McDonald Tel: +44 131 220 9771

College Hill

Nick Elwes Tel: + 44 207 457 2020

Alexandra Roper

www.enegioil.com

Facebook (Enegi Oil PLC)

Twitter (@enegioil)

Qualified Persons

The information in this release has been reviewed by Barath Rajgopaul MSc (Mech. Eng.) C. Eng, a member of the Advisory Board of Enegi. Mr. Rajgopaul has over 31 years experience in the petroleum industry.

The Company

Enegi Oil Plc is an independent oil and gas company. Current operations are focused on opportunities around the Port au Port Peninsula in Newfoundland, Canada and the Clare Basin in County Clare, Ireland. The Port au Port Peninsula is located in western Newfoundland, which, although lightly explored, is in an active petroleum system with light oil having been discovered on a number of occasions. The Clare Basin is located in western Ireland and initial technical studies show that it has the potential to contain shale gas.